Gail gets Myanmar's nod for stake in gas block

Mumbai, Mar 30 (UNI) State-owned gas transporter Gail India today said Myanmar government has approved its acquistation of ten per cent equity stake in Korea's Daewoo International Corporation which was awarded A-3 block of 6,780 sq kms off Myanmar coast in February, 2004.

Gail had signed an assignment agreement on October 03, 2005 with Daewoo in Seoul for equity participation in the A-3 block but it required formal ratification of Myanmar government, Gail informed the BSE, adding drilling in the block yielding gas was completed recently. '' Appraisal of the discovered prospect and further exploratory drilling in the block is likely to commence by the year end.'' A-3 block is located adjacent to A-1 block, where commercial gas discoveries have already been made, Gail said, adding it is a consortium partner in A-1 block. Gail has been considered as the preferred buyer to buy Daewoo's share of natural gas from the A-3 block as well.

If commercial gas reserves are further established in block A-3, the overall combined reserves base of A-I and A-3 shall enhance the robustness of gas export project to India as well as optimisation of capital investment required in upstream and downstream facilities, Gail said in a release.

The Indian gas major has already commissioned detailed feasibility study for transporting the gas via an onland pipeline through the country's North-East and its report will be available by April-end.

The report would be presented to the Myanmar side in a joint meeting likely to be held in early May, the release added.

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